Prince Charles wants houses to be built of traditional materials

The project, dubbed 'Surfbury', includes workshops, shops, pubs, a school and other community facilities on a 250-acre site to the east of Newquay.

Planners say that Surfbury will be similar in design to Poundbury - Prince Charles's new village project in Dorset - and construction could start in 2005.

The plans are expected to be submitted next year by the Duchy of Cornwall - the 141,000-acre estate of land, farms and other property vested to the prince.

Surfbury: What do you think?

Another project for 140 houses, backed by the Prince's Foundation, won approval in January for a 10-acre derelict site in St Austell.

Henry Ashworth, chairman of the Surf Capital steering group, which is campaigning to build on Newquay's reputation as Britain's leading surf centre, said: "I think it's fantastic.

"I think the Duchy is vindicating the vision of Newquay as the surf capital of the UK and we are very excited."

Newquay surfer Dominic Moore, said some of the new jobs could be linked to the town's leisure industry.

'Architecturally sensitive'

He said: "There is a fairly large surf industry here and there are many off-shoots from that so there might be a lot of outdoor pursuit companies that want to set up here.

"There are quite a few media companies with surfing roots that have already set up in Newquay."

Talks are under way between the Duchy and groups including the South West Regional Development Agency and Restormel Council.

Surfbury is expected to reflect the prince's traditional approach to housing at Poundbury.

Phil Randall, Restormel's Strategic Development Officer, said: "It will be as architecturally sensitive as Poundbury.

"One of the key priorities for the council, the Duchy of Cornwall and any other landowners involved is to make sure it becomes an exemplar scheme for the whole country.

"But it will also learn the lessons of Poundbury, so that it is properly integrated into the town."

The council expects that 30% of the homes will be affordable housing.

The Duchy says it wants the views of the public before it puts in a planning application.